Are You Over-Indebted?
Over-Indebtedness occurs when a consumer or household is unable to meet their financial obligations such as paying their monthly accounts on time. Over-Indebtedness is usually a result of spending more money than you earn but can also be due to a reduction in salary and other factors.
Signs of Over-Indebtedness
- Unable to meet monthly financial obligations
- Constantly receiving sms notifications and phone calls from debt collectors for overdue accounts
- Rejected loan applications due to a low credit rating or inability to meet the affordability requirements
- Borrowing funds from unregistered parties (mashonisa) as a last resort and usually at very high interest rates
- Using credit cards to pay for basic household expenses such as rent and groceries
- Paying specific accounts such as a home loan or a car loan and leaving the rest in arrears
- Creditors issuing final demands for payment (section 129 Notice) and threatening to take legal action for overdue debts
Should you be experiencing some or all of the abovementioned, you are likely over-indebted. A lot of over-indebted consumers choose to ignore their debts which will result in substantial interest charges or even repossession of assets such as houses and cars.
Fix Debt can assist Over-Indebted consumers by providing a free credit report and no-obligation financial assessment. Through the debt review process, we will reduce monthly debt payments to an affordable amount and also provide legal protection against repossession of assets.
Feel free to contact us by completing our contact form | 011 568 5039 (phone) | 064 535 1335 (whatsapp) | info@fixdebt.co.za